If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer. If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer. Table 4.a.DozensFixedTotal CostVariableAverageVariable Costs Total Costsper dozenAverageof eggsCostCostsper dozen$3.35$3.35n/an/an/a10$3.35$10.50$7.15$0.72$1.0520$3.35$16.40$13.05$0.65$0.82Page 4 of 5Unit 8 [BU224 Assignment Template]DozensFixedTotal CostVariableAverageVariable Costs Total Costsper dozenAverageof eggsCostCostsper dozen30$3.35$23.10$19.75$0.66$0.7740$3.35$30.00$26.65$0.67$0.7550$3.35$36.50$33.15$0.66$0.7360$3.35$48.00$44.65$0.74$0.8070$3.35$64.40$61.05$0.87$0.9280$3.35$80.00$76.65$0.96$1.0090$3.35$135.00$131.65$1.46$1.50a. What is Brenda's break-even price for a dozen of eggs? Explain how you found thatanswer.b. What is Brenda's shut-down price for a dozen of eggs? Explain how you found thatanswer.

Answered: If the market price of a dozen eggs at…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer.
If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer.
If the market price of a dozen eggs at the local farmers market is 72 cents per dozen, should Brenda continue producing eggs in the short-run? Explain how you determined your answer. g. If the market price of a dozen eggs at the local farmers market is 64 cents per dozen, will Brenda make an economic profit? Explain how you determined your answer.

Table 4.a.
Dozens
Fixed
Total Cost
Variable
Average
Variable Costs Total Costs
per dozen
Average
of eggs
Cost
Costs
per dozen
$3.35
$3.35
n/a
n/a
n/a
10
$3.35
$10.50
$7.15
$0.72
$1.05
20
$3.35
$16.40
$13.05
$0.65
$0.82
Page 4 of 5
Unit 8 [BU224 Assignment Template]
Dozens
Fixed
Total Cost
Variable
Average
Variable Costs Total Costs
per dozen
Average
of eggs
Cost
Costs
per dozen
30
$3.35
$23.10
$19.75
$0.66
$0.77
40
$3.35
$30.00
$26.65
$0.67
$0.75
50
$3.35
$36.50
$33.15
$0.66
$0.73
60
$3.35
$48.00
$44.65
$0.74
$0.80
70
$3.35
$64.40
$61.05
$0.87
$0.92
80
$3.35
$80.00
$76.65
$0.96
$1.00
90
$3.35
$135.00
$131.65
$1.46
$1.50
a. What is Brenda's break-even price for a dozen of eggs? Explain how you found that
answer.
b. What is Brenda's shut-down price for a dozen of eggs? Explain how you found that
answer.

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The total cost of production includes both fixed and variable costs incurred by a company during the production process. The variable cost is the portion of the total cost that varies according to the amount of output produced. The fixed cost, on the other hand, remains constant regardless of the amount of output produced. The cost per unit of output produced is the average total cost. It's calculated by dividing the total cost by the total output. The average variable cost is calculated by dividing the total variable cost by the total output produced and represents the variable cost per unit of output produced.

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